Armscor maintains it has “overwhelmingly achieved all its goals” in terms of service level agreements (SLA) set with the Department of Defence (DoD) for the 2015/16 financial year.
These include the acquisition of defence materiel, systems support and the management and execution of defence technology, research, testing and evaluation, the state’s defence and security acquisition agency said in a statement following presentation of its annual report to the Portfolio Committee on Defence and Military Veterans (PCDMV).
The agency, having achieving the majority of its strategic objectives is, according to chief executive Kevin Wakeford, “determined to improve its revenue streams beyond South African borders”.
Registering as a strategic supplier to the United Nations is one of the avenues being explored and Armscor has “started providing services to some countries on the continent”.
Wakeford sees these developments are creating further opportunities for the South African defence industry, already heavily dependent on exports for survival.
On the financial side Armscor achieved a nett surplus of R200,1 million, compared to R84,2 million for the previous financial year. This was largely due to gains from the revaluation of fixed and investments properties.
Faced with declining revenues, Wakeford reported 40% of the agency’s operating expenses are covered by revenue generated outside its government allocation. He believes this will increase in future.
“Armscor recorded a healthy liquidity and solvency position for the 2015/16 financial year,” he said reviewing his first year in office as chief executive.
According to an Armscor statement the Department of Planning, Monitoring and Evaluation (DPME) in the Presidency rated Armscor as the best for strategic planning and performance evaluation. “With this performance in mind, the organisation is poised to face the future with greater strategic focus in bedding down its turnaround strategy,” according to the statement.
The PCDMV was also told Armscor had been given a clean audit with no qualifications from the Auditor General.